Home
Class 11
ACCOUNTS
A company whose accounting year is a fin...

A company whose accounting year is a financial year, purchased on 1st July 2015 Machinery costing Rs 30,000.
If purchased further machinery on 1st January, 2016 costing Rs 20,000 and on 1st October, 2016 costing Rs 10,000.
On 1st April, 2017, one-third of the machinery installed on 1st July, 2015 became obsolete and was sold for Rs 3,000. Show how Machinery Account would appear in the books of the company. It being given that machinery was depreciated by Fixed Instalment Method at 10% p.a. What would be the value of Machinery Account on 1st April, 2018?

Text Solution

Verified by Experts

The correct Answer is:
[Depreciation on 31st March,: 2016= Rs 2,750; 2017 = Rs 5,500; and 2018 = Rs 5,000; Loss on Sale of Machinery- Rs 5,250; on 1st April, 2018: Balance Rs 38,500, i.e., in Machinery I `(2//3)`-Rs 14,500; Machinery II- Rs 15,500 and Machinery III- Rs 8,500.]
Promotional Banner

Topper's Solved these Questions

  • DEPRECIATION

    TS GREWAL|Exercise EVALUATION QUESTIONS: QUESTIONS WITH MISSING VALUES|3 Videos

  • DEPRECIATION

    TS GREWAL|Exercise Short Answer Type Questions|3 Videos

  • COMPUTERS IN ACCOUNTING

    TS GREWAL|Exercise Multiple choice Questions (MCQs)|3 Videos

  • FINANCIAL STATEMENTS OF SOLE PROPRIETORSHIP

    TS GREWAL|Exercise Illustration|50 Videos

Similar Questions

Explore conceptually related problems

On 1st July, 2016, Sohan Lal & Sons purchased a plant costing Rs 60,000. Additional plant was purchased on 1st January, 2017 for Rs 40,000 and on 1st October, 2017, for Rs 20,000, plus CGST and SGST "@ "6% each. On 1st April, 2018, one-third of the plant purchased on 1st July, 2016, was found to have become obsolete and was sold for Rs 6,000, charging CGST and SGST "@ "6% each. Prepare the Plant Account for the first three years in the books of Sohan Lal & Sons. Depreciation is charged "@ "10% p.a. on Straight Line Method. Accounts are closed on 31st March each year.

Semeer & Bros. purchased a machinery for Rs 80,000 on 1st July, 2015 and decided to depreciate it "@ "10% annually on the Diminishing Balance Method. On 1st October, 2017, a part of the machinery valued in the books of firm at Rs 16,000 on 1st July, 2015 was sold for Rs 10,000. Show Machinery Account in the books of the firm for the years ended 31st March, 2016, 2017 and 2018.

On 1st April, 2016, a machinery was purchased for Rs 20,000. On 1st October, 2017 another machine was purchased for Rs 10,000 and on 1st April, 2018, one more machine was purchased for Rs 5,000. The firm depreciates its machinery "@ "10% p.a. on the Diminishing Balance Method. What is the amount of Depreciation for the years ended 31st March, 2017, 2018 and 2019? What will be the balance in Machinery Account as on 31st March, 2019?

A company purchased machinery for Rs 2,00,000 on 1st April, 2016. The machinery is depreciated " @ "10% p.a. of cost. On 1st October, 2018, the machinery was sold for Rs 1,20,000. Draw the Machinery Account for the years ended 31st March 2017, 2018 and 2019.

Dowra Bros. purchased on 1st April, 2015 a second-hand machinery for Rs 36,000 and spent Rs 4,000 on its installation. On 1st October in the same year, another machinery costing Rs 20,000 was purchased. On 1st October, 2017, machinery bought on 1st April , 2015 was sold off for Rs 12,000 and a fresh machine was purchased for Rs 64,000 on the same date. Depreciation is provided annually on 31st March "@ " 10% p.a. on the Written Down Value Method. Show Machinery Account for 3 years ending 31st March, 2018.

On 1st April, 2015, A Ltd. Purchased a machine for Rs 2,40,000 and spent Rs 10,000 on its erection. On 1st October, 2015, an additional machinery costing Rs 1,00,000 was purchased. On 1st October, 2017, the machine purchased on 1st April, 2015was sold for Rs 1,43,000 and on the same date, a new machine was purchased at a cost of Rs 2,00,000. Show the Machinery Account for the first four financial years after charging Depreciation at 5% p.a. by the Straight Line Method.

Kapil Ltd. purchased a machinery on July 01, 2011 for Rs. 3,50,000. It purchased two additional machines, on April 01, 2012 costing Rs. 1,50,000 and on October 01,2012 costing Rs. 1,00,000. Depreciation is provided @ 10% p.a. on straight line basis. On January 01, 2013, first machinery become useless due to technical changes. This machinery was sold for Rs. 1,00,000. 1,00,000. prepare machinery account for 4 years on the basis of calendar year.

On 1st April, 2015, machinery was purchased for Rs 80,000. On 1st April, 2016 new machinery costing Rs 40,000 was purchased. On 30th June, 2017, machinery purchased on 1st April, 2015 was sold for Rs 65,000 and on 30th September, 2017 machinery purchased on 1st April, 2016 was sold for Rs 26,750. On 1st October, 2017 another machinery for Rs 50,000 was acquired. On 1st October, 2018 new machinery costing Rs 40,000 was purchased. Depreciation was charged "@ "10% p.a. on the Diminishing Balance Method. Prepare Machinery Account for your years ending on 31st March, 2019.

Saraswati Ltd. purchased a machinery costing Rs. 10,00,000 on January 01, 2011. A new machinery was purchased on 01 May, 2012 for Rs. 15,00,000 and another on July 01, 2014 for Rs. 12,00,000. A part of the machinery which originally cost Rs. 2,00,000 in 2011 was sold for Rs. on April 30, 2014. Show the machinery account, provision for depreciation account and machinery disposal account from 2011 to 2015 if depreciation is provided at 10% p.a. on original cost and account are closed on December 31, every year.

TS GREWAL-DEPRECIATION-Straight Line Method
  1. A Van was purchased on 1st April, 2016 for Rs 60,000 and Rs 5,000 was ...

    Text Solution

    |

  2. On 1st April, 2015, Star Ltd. purchased 5 machines for Rs 60,000 each....

    Text Solution

    |

  3. A company whose accounting year is a financial year, purchased on 1st ...

    Text Solution

    |

  4. On 1st July, 2015, A Co. Ltd. Purchases second-hand machinery for Rs 2...

    Text Solution

    |

  5. On 1st April, 2016, Shivam Enterprise purchased a second-hand machiner...

    Text Solution

    |

  6. Modern Ltd. Purchased a machinery on 1st August, 2016 for Rs 60,000. O...

    Text Solution

    |

  7. On 1st July, 2016, Sohan Lal & Sons purchased a plant costing Rs 60,00...

    Text Solution

    |

  8. {:("Following balances appear in the books of Rama Bros ...

    Text Solution

    |

  9. {:("Following balances appear in the books of Pyriyank Brothers: ...

    Text Solution

    |

  10. {:("Following balances appear in the books of X Ltd. as on 1st April, ...

    Text Solution

    |

  11. A boiler was purchased from abroad for Rs 10,000. Shipping and forward...

    Text Solution

    |

  12. The original cost of furniture amounted to Rs 4,000 and it is decided ...

    Text Solution

    |

  13. Babu purchased on 1st April, 2017, a machine for Rs 6,000. On 1st Octo...

    Text Solution

    |

  14. X bought a machine for Rs 25,000 on which he spent Rs 5,000 for carri...

    Text Solution

    |

  15. A company purchased a machinery for Rs 50,000 on 1st October, 2016. An...

    Text Solution

    |

  16. On 1st April, 2016, a machinery was purchased for Rs 20,000. On 1st Oc...

    Text Solution

    |

  17. M/s. P & Q purchased machinery for Rs 40,000 on 1st October, 2016. Dep...

    Text Solution

    |

  18. On 1st October, 2015, Meenal Sharma bought a machine for Rs 25,000 on ...

    Text Solution

    |

  19. A company purchased on 1st July, 2015 machinery costing Rs 30,000. It ...

    Text Solution

    |

  20. Astha Engineering Works purchased a machine on 1st July, 2015 for Rs 1...

    Text Solution

    |